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LOGO Contents
LOGO
Market
Chapter 4
MARKET
SEGMENTATION - Market segmentation
TARGETING -
POSITIONING
Targeting

Positioning
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1.1 Market classificaiton

• In Marketing, a market is the set of all actual
and potential buyers of a product or service.
• Is there anything you want to buy but can't
afford?

1.1 Market classificaiton 1.1 Market classificaiton

•4 types of markets:
Classification by micro environment:
Potential a set of consumers who profess a sufficient
˗ Consumer markets
market level of interest in a product or service
˗ Business markets
available
(current)
a set of consumers who have interest, ˗ Reseller markets
income, and access to a particular offer ˗ Government markets (Samco company
market
parts of current markets and get seperate assembling buses, water trucks to water trees
Served
and better offering than the rest of current on roads, garbage trucks, etc.)
markets
markets ˗ International markets
Penetrated customers who have already bought the
markets product or service.

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1.2. Market's needs 1.2. Market's needs

Why do you buy shampoo? 5 types of needs when buying a product/service

• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs

1.2. Market's needs 1.2. Market's needs

Real needs: What the consumer wants from a

Stated needs: what buyers say when
product or service for rational and genuine needs
sellers ask them (what the stated needs mean)

1.2. Market's needs 1.2. Market's needs

Unstated needs: the additional benefits that customers • Delight needs: Needs that are not essential
also want from the product or service but they don't but would delight if met
say it. The benefits can be supportive products or
services or the brand credit and quality assurance

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1.2. Market's needs 1.2. Market's needs

• Secret needs: Needs that the customer does not List the 5 types of needs for luxury cars
express, often intangible in nature (They want
recognition and praise from others for effective
buy and use of products).

2.1. What is market segmentation?

• Market segmentation involves dividing a market into

smaller segments of buyers with distinct needs,
characteristics, or behaviors that might require
separate marketing strategies or mixes

2.2. Reasons for segmentation 2.3. Segmentation bases

• Unable to serve all customers

• Customers' needs become more and more
Geography Demography
diversified
• A firm's capability is limited Major
segmentation
bases

Psychology Behaviours

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2.3.1. Geography 2.3.2. Demography

• Geographic segmentation calls for dividing the • Demographic segmentation divides the market into
market into different geographical units, such as segments based on variables such as age, gender, family
nations, regions, states, counties, cities, or even size, family life cycle, income, occupation, education,
neighborhoods. religion, race, generation, and nationality.
• VD: The climate in Northern Vietnam is mostly cold • The most popular bases for segmenting customer
and humid but the climate in Southern Vietnam is groups because:
always hot. - Consumer needs, wants, and usage rates often vary
• Apply for products that customers in different closely with demographic variables.
geographical areas have different needs for - Demographic variables are easier to measure than
• Which product can be segmented based on most other types of variables.
geographical areas? • Segmentation example for the footwear market

2.3.2. Demography 2.3.2. Demography

Age 1-2 Age 2-5 Age 6-11 Above 11: By genders

Female:
Age 12-15 Age 16 until Pregnancy and Working after
having a baby after giving birth giving birth

2.3.2. Demography 2.3.3. Psychology

Male:
Psychographic segmentation divides buyers into
Age 12 until Having a girlfriend or Married
having a girlfriend alone with high social different segments based on social class, lifestyle, or
status personality characteristics.
– Social class: working class, middle class, upper class
– Lifestyle: achievers, strivers, survivors
– Personality: compulsive, outgoing, authoritarian,
ambitious

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2.3.3. Psychology 2.3.4. Behaviours

Oppo segments its market based on lifestyles, focusing • Behavioral segmentation divides buyers into
on young people who loves selfie and posting their segments based on their knowledge, attitudes, uses,
photos on social networks. or responses to a product.
• Behavioral segmentation variables:
– Occasions
– Sought benenfits
– User status
– Usage rates
– Loyalty

2.3.4. Behaviours 2.3.4. Behaviours

• Occasions: Buyers can be grouped according to • Benefits sought: grouping buyers according to the
occasions when they get the idea to buy, actually different benefits that they seek from a product
make their purchase, or use the purchased item. • Examples:
• Example: buying flowers – shampoo benefits: getting rid of dandruff, smooth
hair, reduce hair loss, etc.
Regular buy Special buy
– toothpaste benefits: reducing sensitivity, teeth
whitening, tartar control, cavity protection, and
fresh breath

2.3.4. Behaviours 2.4. Requirements for effective

segmentation
• Usage rates: light, medium, and heavy product users The size, purchasing power, and profiles of the
• Pareto principle (or 80/20 rule) Measurable
segments can be measured

The market segments can be effectively

Accessible
reached and served.

heavy users The market segments are large or profitable

Substantial
enough to serve.
The segments are conceptually distinguishable
Differentiable and respond differently to different marketing
mix elements and programs
Effective programs can be designed for
Actionable
attracting and serving the segments.

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3.1. Evaluating market segments 3.1.1.Market attractiveness

We evaluate a market based on: •Market size

• the attractiveness of the market •The growth of the market segment
• the firm's strengths •Profitability
•Less legal regulations
•Less competition
•Easy access to customers
•Buyer's power
•Promote the firm's strengths

3.1.2. The firm's strengths 3.2. Types of targeting strategies

• Mass Marketing strategy: a firm decides to
• R&D advantage ignore market segment differences and target
• Great financial power the whole market with one offer.
• Low manufacturing costs → no market segmenta on
• Professional Marketing team • Example: Coca-cola during their first few years
• Product quality • It costs less but doesn't meet customers' needs
• Professional sales team well.

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3.2. Types of targeting strategies 3.2. Types of targeting strategies

• Concentrated marketing (or niche marketing)
• Differentiated Marketing strategy: a firm
strategy: a firm goes after a large share of one or a
decides to target several market segments few smaller segments, instead of going after a small
and designs separate offers for each share of a large market.
• It meets customers' needs well but costs • Examples: cellphones for elders
more.

3.2. Types of targeting strategies 3.2. Types of targeting strategies

• Micromarketing is the practice of tailoring products and • Micromarketing is the practice of tailoring products and
marketing programs to suit the tastes of specific marketing programs to suit the tastes of specific
individuals and locations individuals and locations
• Micromarketing includes local marketing and individual • Individual marketing is tailoring products and marketing
marketing programs to the needs and preferences of individual
• Local marketing involves tailoring brands and customers.
promotions to the needs and wants of local customer • Individual marketing has also been labeled one-to-one
groups—cities, neighborhoods, and even specific stores marketing, mass customization, and markets-of-one
marketing.

4.1. What is positioning?

• A product’s position is the way the product is

defined by consumers on important attributes—the
place the product occupies in consumers’ minds
relative to competing products.
• Brands happen in the minds of consumers

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4.1. What is positioning? 4.1. What is positioning?

• To position a product, a firm must:

– build a special feature for the product
– bring the feature to customers' minds
• A firm must differentiate its products and brands
Clean
for competition Milk
• The differentiation must be meaningful and
useful for customers

4.2. Positioning maps 4.2. Positioning maps

In planning their differentiation and positioning

Cadillac Escalade
strategies, marketers often prepare perceptual Infinity QX56
positioning maps that show consumer perceptions Lexus LX570
Lincoln Navigator
of their brands versus competing products on Toyota Land Cruiser

important buying dimensions. Land Rover

Range Rover

4.3. Reasons for positioning 4.4. Position steps

• Customers' ability to memorize information • Select worthy differences

is limited → there must be a clear, succinct • Select an overall positioning strategy
and impressive message. • Develop a positioning statement
• There must be difference and uniqueness so
that customers would choose you
• Information overload confuses customers →
being different to “orient” their behaviors.

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4.4. Position steps 4.4. Position steps

Step 1: A difference is worth establishing to the Step 2: Select an overall positioning strategy
extent that it satisfies the following criteria: • Customers always make a choice that has
• Important greatest value.
• Distinctive • Value proposition—the full mix of benefits on
• Superior which a brand is differentiated and positioned
• Communicable
• Preemptive
• Affordable
• Profitable

4.4. Position steps 4.4. Position steps

Step 3: Develop a positioning statement
Possible value propositions • A positioning statement summarizes company or brand
positioning.
• Communicating and Delivering the Chosen Position
– Choosing the positioning is often easier than
implementing the position.
– Establishing a position or changing one usually takes a
long time.
– Maintaining the position requires consistent
performance and communication.
Example: True milk saying “clean milk” alone isn't enough;
it needs to invest in a high quality milk manufacturing
system and gets certificates.

Exercises LOGO

LOGO
1. Find variables that can be applied for the
markets of the following products
Shampoo
Milk
Footwear
Clothes
2. Select your targeted segment and position the
product for that segment. Create a slogan for
the product based on the positioning.